Pittsburgh, United States:
Governments should intentionally use public funding and regulation to quickly scale-up clear power applied sciences to deliver down prices, obtain world local weather targets and enhance economies worldwide, in accordance to a brand new report launched right now by main worldwide economists and power coverage consultants.
Ten Principles for Policymaking within the Energy Transition: Lessons from expertise requires governments to urgently reshape their coverage approaches to speed up innovation, job-creation, and price discount within the transition from fossil fuels to clear power.
The report, based mostly on a complete evaluation of the final three a long time of world power coverage, exhibits that to replicate the excellent successes of the power transition to this point, equivalent to offshore wind and photo voltaic PV, governments should transcend simply offering a ‘level playing field’ the place applied sciences are left to compete towards one another. In truth, they need to proactively use the three levers of coverage: funding, tax and regulation, to speed up innovation and price discount in clear applied sciences. The report recommends that governments also needs to goal ‘tipping points’, the place clear applied sciences acquire a bonus over fossil fuels, main to a speedy reallocation of funding.
Contrary to a number of the recommendation given to governments over the previous 30 years, authorities coverage, funding and regulation can minimize power prices as an alternative of accelerating them, crowd in non-public funding as an alternative of crowding it out, and speed up innovation and progress. The successes of onshore wind, offshore wind, photo voltaic PV and electrical autos had been pushed by governments straight figuring out and supporting the applied sciences that they wanted to succeed.
Laura Diaz Anadon, Professor of Climate Change Policy on the University of Cambridge, one of many lead authors, stated: “Governments cannot simply set the goal and expect the market to deliver. They must be active participants; investing and regulating to bring down costs and making strategic technology choices to incentivise, de-risk and focus the private sector. Doing so in an adaptive fashion can deliver a transition to clean energy that is faster, cheaper and more sustainable for all.”
Investment into clear power sectors, together with energy era, electrical energy grids, highway transport, steelmaking and hydrogen, might assist 65 million jobs and $26 trillion of advantages by 2030.i The report exhibits how authorities interventions can create expertise tipping factors, which in flip unlock competitiveness, funding and the bottom price decarbonisation – reaching a quicker power transition and decreasing payments for shoppers.
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Notes to editors
About the Economics of Energy Innovation and System Transition (EEIST) Project
Economics of Energy Innovation and System Transition (EEIST) is a 3 yr undertaking led by a consortium of educational consultants in complexity economics and methods considering throughout the UK, EU, Brazil, China, and India. The undertaking goals to apply new financial approaches to assist decarbonisation coverage determination making in companion international locations. The EEIST analysis is impartial and doesn’t signify the views of the UK authorities or governments of the companion international locations and the EU.
i New Climate Economy https://newclimateeconomy.report/2018/wp-content/uploads/sites/6/2019/04/NCE_2018Report_Full_FINAL.pdf
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